So, you want take admission in an MBA program and then start your career in Human Resource domain. You will spend around Rs.8,00,000 for your MBA-HR program �a huge expense. But is it really worth it?
Why to take MBA
There are two principal motivators to do an MBA-HR.
>> To gain the knowledge of academic business principals
>> To get a HR job
Unfortunately 90% Indian students opt for MBA-HR to get a job and MBA is seen a gateway to get a job offer with hefty salary.
MBA Costs and Returns
2nd or 3rd tier school
Attend HR practical training & joining HR Job after Graduation
Tuition, Conveyance & other expense (Rs. 25,000 per year)
The Salary you have NOT received because you joined MBA-HR (Assuming salary is Rs.10,000 only per month)
(After 2 years)
Your average salary after 2 years (Average as per industry study)
Rs.10,000 pm should have been increased to Rs.15,000 in 2 years
After 5 years
Rs.45,000 * 60= Rs.27,00,000
Rs.15,000 * 60= Rs.9,00,000
Rs.15,000 * 60= Rs.9,00,000
Rs. 27,00,000-Rs.12,90,000 =
Rs. 9,00,000-Rs.7,90,000 =
No choice at all
>> 90% of the companies are NOT interested to recruit a HR manager ONLY with zero HR theoretical & bookish knowledge without any HR practical work knowledge.
>> 85% companies offer the same salary to an MBA-HR candidate from second or third tier MBA schools and to a graduate with knowledge of knowhow of HR functions in practical field.
>> 85% companies prefer a HR candidate equipped with knowledge of HR ground reality and real life exposure of several HR functions like, Designing HR policies, Manpower planning, Job portals searching, Managing Payrolls, Managing PF, ESI, Designing PMS system, Handling Statutory Compliance etc.
>> Please remember all MBA degrees do not carry equal importance and acceptance in industry
>> The number of colleges, universities, and business schools offering a Master’s degree in Business Administration is increasing, making the space quite crowded. Unless a student earns a degree from a respectable program, it might not be as valuable as expected.
>> Companies are not interested to hire an HR Manager who earned their MBA degree from an unknown or online or distance.
>> Hence doing MBA-HR from a second or third-tier school must end up being a waste of time, money, opportunity and most of all, time.
What an organisation wants in a HR professional
>> Practical knowledge of HR domain
>> Hand on skills on HR functions on practical scenario, not bookish knowledge
>> Practical implementation expertise on various HR domain
>> Soft skills, like Communication, Decision making ability, Innovation, Networking skills etc.
Alternatives and Final Words of Wisdom before you take decision >> If somebody cannot get opportunity into a top school for MBA-HR program, it is not advisable to jump into any MBA school to just have a degree, with no return or no career benefits.
>> If job is your main criteria and objective (Which is obviously YES), and if you do not get an opportunity into a top grade MBA-HR school, do not get panicked.
>> Get some practical experience, attend some reputed and effective HR short course, enroll yourself in a HR practical training program and learn about real life HR functions. Get some real life exposure on HR Management program and get hands on HR training on HR operation.
>> Find out a HR training institute in your city who provides HR part time certification courses along with placement opportunity in HR domain.
>> Get a HR job post the Practical HR course and then get admitted into any Executive MBA program to add value to your experience to grow up in your career.